The Cost of Debt Settlement and other Relief Options: What Is The Cheapest Way to Get Out of Debt?

When the bills start adding up and your financial situation seems to be overwhelming and out of control, finding a solution can seem impossible at first. Luckily, there is plenty of information available from reputable companies and Debt Consultants to help you get out of debt.

At Liberty Debt Relief, we want to make sure that you not understand all the avenues available, including the cost of debt settlement, consolidation, management, and more. Of course, the right and cheapest debt relief path will depend on your particular situation and goals.

Debt Settlement

One of the most popular solutions, debt settlement allows consumers to pay a lower overall amount on the debts they owe. Along with helping people set up more affordable monthly payments, debt settlement negotiations can help people avoid bankruptcy and pay back excessive debt within just a few years. The cost of choosing this debt settlement program depends on what company you decide to work with and how much money you are looking to settle. For many people, this is the most affordable debt relief solution.

The settlement companies who will work with creditors on your behalf require fees to assist in this process. Your Debt Consultant will dedicate a significant amount of time to your case and will often charge either a flat rate or a certain percentage of the amount of money you will save for their services. While the service fee may seem counterproductive, it is just a small cost of debt settlement compared to what you will earn mentally and financially. More importantly, you will only have to pay these fees once your settlement is complete, as long as you use a reputable company like Liberty Debt Relief.

Debt Consolidation

Similar to debt settlement, debt consolidation is another way to achieve financial success quickly and efficiently. Unlike a settlement which eliminates a good portion of your debt, consolidation simply moves the debt to another account. This route does require additional fees depending on whether you choose a debt consolidation loan or a balance transfer.

If you are looking for the cheapest path to debt relief, this is a great option to put at the top of your list. Of course, this depends on your ability to get a loan with a lower interest rate than the ones you already have, as well as your ability to make continued monthly payments. If your credit score is such that a great interest rate is out of reach or if you’re concerned you may not be able to make payments on time, debt settlement is likely a better option for you.

Debt Management Plan

Debt management plans are a combination of getting out of debt and making steps toward financial goals. A Debt Consultant from a reputable company will negotiate with your credit card and other financial companies to get you a lower overall interest rate and consolidate your debts. This particular avenue also provides you with the means to pursue one of the most affordable forms of debt relief available — preventing debt with a sustainable budget and access to endless information.

Your financial advisor will help you understand what makes an effective budget and introduce you to numerous tips and tricks to keeping your debt as minimal as possible over time. Because other plans help you get out of debt in the short term, also enrolling in a debt management plan will keep you from getting back into a similar situation so you do not end up paying even more money for assistance and to your loan companies.

Earn Additional Income

If the thought of paying for an outside expert to help you in your debt relief quest seems a little too out of your league, there is a path that may suffice for those who are not as deeply in debt as others. If you are only a few thousands dollars in debt, for example, it may be worth it to simply earn additional income until you can pay off what you currently owe. Consider getting a part-time job, becoming a freelancer, or even selling some old items — such as clothes, home items, or basement-ridden Christmas presents — to get some extra cash.

If you can earn an extra few hundred dollars every month, you can easily apply those funds to your debt accounts. This will help lower the accrued interest, raise your credit score and ensure that you get out of debt quicker and easier than originally thought possible.

Understanding the Costs of Debt

Though settlement is typically the most affordable debt relief for most people, getting some third party perspective can be extremely useful. Talk to someone at Liberty Debt Relief or another debt expert to better understand what getting out of debt entails and the best and most affordable options for your financial success.

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